One of the most integral parts of the Indian Economy, this industry is worth more than USD 13 billion in the present year. Being the fourth largest sector at present, it is expected to scale further heights in future by surpassing the USD 33 billion mark by the year 2015 and the milestone USD 100 billion mark by 2025.
Let us explore more on the reason behind the success behind the FMCG industry in India, the salaries and scope of this industry.
Reasons behind the success of FMCG Industry in India
a) Low operational cost triggered by intense competition between organized and unorganized segments
b) Availability of raw materials
c) Rise of middle class and a steep growth in disposable incomes which as a result has given the much required impetus to premium brands
d) Solid distribution networks
e) Growth in investments of stock markets of FMCG companies
f) Growth of population resulting in increased demand for day to day supplies
g) Penetration in the rural sector
h) Fast growth of urbanization
i) Powerful presence of MNCs or Multi National Companies
Scope of FMCG Industry in India
Touted as one of the most diverse sectors in the market, the FMCG industry has a range of job opportunities up for the grabs starting from sales and marketing. Other options available are:
- Human Resources
- General Management
- Product Development
Salaries in FMCG Industry
The growth of the FMCG industry can only spell higher incomes for people involved with it. Here is a glimpse of how they are paid at present:
|Job Category||Annual Average Salaries|
|Marketing Manager||INR 2319380|
|Brand Marketing Manager||INR 1965270|
|Brand Manager||INR 1350000|
|HR or Human Resources Manager||INR 1200000|
|Area Sales Manager||INR 884372|
|Vice President Operations||INR 5500000|
|Marketing Director||INR 4200000|
Leading FMCG companies in India
- Colgate-Palmolive (India) Limited
- Nirma Ltd
- Bajaj Hindusthan Ltd
- Nestle India Ltd
- Super Bakers (India) Ltd
- Godrej Consumer Products Ltd
- Dabur India Ltd
- Terai Tea Company Ltd
- ITC Limited
- Zydus Wellness Ltd
FMCG Industry in India- Challenges
Amidst all the promises spurred by the impressive estimated growth of the industry by the year 2015, there are still mountains to climb and challenges to combat. Not very strangely some of the encouraging factors themselves have come with their set of issues which need focus. What are they? Let us find out.
The non agricultural income of the rural population is on rise and as such they are in a position to spend more on the luxury goods. However, navigating the entire terrain of geographical complexities, that India has, is a herculean task in itself. As a result there are no supermarkets in the remote villages of the country, which is hurting the interests of the industry in a major way. Therefore the problem poor network distribution should be seriously looked into which again involves a whole range of concerns like distribution costs, pricing etc
The plummeting value of rupee is a cause of genuine concern for companies importing raw materials which results in lower margins Higher rate inflation will result in shooting prices of raw materials
*Salaries are subject to change without prior notice.
Related Salary Article
Product Manager Salary
FMCG Products Overview
The regular day-to -day needs of goods that do not take much time for consumption or are perishable, so that they can’t be stored for long, varying from bread, butter, milk, tooth-paste, vegetable oil, flour, biscuits, razors, chocolates, soft-drinks, beverages like tea and coffee, shampoo, hair oil, detergents, medicines, toiletries to clothing, furniture and electronics items, et al are known as FMCGs. FMCGs is an acronym for Fast Moving Consumer Goods, which are packaged stuffs, other than grocery sold in super markets and retail shops.
FMCG Products and Categories
Foods and Beverages
Food stuffs include bread, dairy products like butter, milk, cheese etc., vegetable oil, cooking oil, flour, chocolates, candies, ice-creams, biscuits, jam, ready-to-eat items, chips and so on. While beverages include tea, coffee, soft drinks, packaged juices, energy drinks, packaged drinking water etc.
Personal Care, Oral Care, Hair Care and Skin Care
Such products include sanitary napkins, tissues, razors, shaving creams, shave-gel, anti-ageing products, shampoos, conditioners, lotions, cosmetics, deodorants, perfumes, hair oil, tooth-paste, tooth-brush, moisturizers, cleansers, bathing soaps, body-wash and other toiletries.
Household care products consist of laundry soaps, synthetic detergents, dish washing liquid/ gel, floor cleaners, toilet cleaners, air fresheners, insecticides and mosquito repellents, metal polish, furniture polish and so on.
Cell phones, laptops, computers, digital cameras, refrigerators, washing machines and other electronic gadgets are classified as Fast Moving Consumer Electronics or FMCEs.
Currently, Indian FMCG sector is worth Rs. 1300 billion and expected to be around a whopping value of Rs. 4000 to Rs. 6000 billion by 2020. ITC, HUL, Nestle and Britannia are leading this year and believed to perform well in the fourth quarter of the year also. As a result, FMCG growth rate is registered above 15% for the present year. FMCG and Retail sector, both are likely to create jobs in India this year as well, in functions like marketing, sales, advertising, supply chain, logistics, human resources, product packaging and development, finance, operations, general management, supervising and so on.
Analysis of FMCG Sector
Low cost of production owing to labour-intensive techniques of production.
Intense network of distribution in both urban and rural areas.
Innovative brand promotion strategies that help to create a larger market share.
FMCG companies do not invest much in technology and hence fail to enjoy lower costs in long-run or economies of scale.
Inflationary pressures hit the production costs.
Imitated products in market hurt the brands.
Unexplored rural markets.
Increasing disposable income of consumers.
Large and expending domestic market.
Changing tastes and preferences of consumers- preference to packaged goods.